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Energy Tomorrow Blog

The Story Behind the Recent Rise in Airline Ticket Prices

jet fuel  consumers 

Dean Foreman

Dean Foreman
Posted April 28, 2021

We’ve written quite a bit recently about how the economic recovery so far has spurred increased demand for oil and refined products (see herehere, and here). The demand for air travel and consequently jet fuel, which historically have related strongly to the pace of economic growth, lagged the economy so far.

In fact, U.S. passenger traffic in April 2021 was roughly half of what it was in 2019, per the Transportation Safety Administration, so many people are asking why ticket prices have already begun to rise. After all, even as summer approaches, aren’t there a lot of idle planes and crews eager to be re-hired and return to service?   

There is in fact a lot of idle capacity. Yet, ticket prices also seem to have increased recently and outpaced the return of passengers – for example, with recent price spikes for airfare to some attractive destinations.

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Fuel Supply Networks are Responding Properly

fuel supply  gasoline  distillate demand  jet fuel 

Dean Foreman

Dean Foreman
Posted March 26, 2020

Supply networks for refined products – including gasoline, diesel and jet fuel – appear to be responding properly and flexibly to sudden and sharp declines for transportation fuel stemming from the coronavirus (COVID-19) and global efforts to slow its spread.

Market conditions can shift, yet API’s view at this point is that most refined products markets have continued to function well in keeping about a month’s worth of storage.

We gauge this in part by comparing recent inventory levels for gasoline, diesel and jet fuel with their ranges over the past five years. Although some products appear to have more available storage capacity than others, if needed, it also is apparent that the pace at which refiners produce fuels can provide additional adjustments which will affect demand for storage.


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Diesel Fuel Demand Up

crude oil  diesel  diesel fuel  economic recovery  gasoline  oil demand  consumer confidence  crude oil supplies  jet fuel 

Jane Van Ryan

Jane Van Ryan
Posted October 15, 2010

API Chief Economist John Felmy told reporters this morning that there is glimmer of hope that the economy might be improving. API's Monthly Statistical Report for September shows that U.S. demand for oil products grew last month, foreshadowing a shift from economic stagnation to recovery. 

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